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OAAS Webinar Notes

Posted on 02.13.15 |

Mike Sciortino and Michael Hee present the CMG Capital Management Group Opportunistic All Asset StrategyThe CMG Capital Management Group Webinar on the Opportunistic All Asset Strategy (OAAS) was well attended by advisors who seek tactical portfolio solutions for their clients. OAAS is a broadly diversified tactical investment solution for global asset allocation.

The CMG Capital Management Group Opportunistic All Asset Strategy is a fully diversified tactical portfolio with a defined risk management process. The goal is to capture broad bull market gains, with the  flexibility to reduce the risk in bear markets.

The CMG Opportunistic All Asset Strategy is a quantitative investment strategy that analyzes a broad universe of mutual funds or exchange traded funds (ETFs) to determine a portfolio allocation with the goal of generating positive returns over multiple market cycles.

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Categories: Tactical Investment Strategies Tags: Michael Hee, Mike Sciortino, Price momentum, relative strength, Webinar

Tactical Rotation Strategy Webinar

Posted on 11.13.14 |

Michael F. Sciortino, Sr. Executive Vice President, Managing Director, Head of Distribution, CMG Capital Management Group

Michael F. Sciortino, Sr. Executive Vice President, Managing Director, Head of Distribution, CMG

On Wednesday, December 3rd at 12:00PM EST, Mike Sciortino and Michael Hee will discuss the CMG Tactical Rotation Strategy and why it makes sense in your clients’ portfolios today.

To register for the webinar, please sign up here:  https://www3.gotomeeting.com/register/119847414

The CMG Tactical Rotation Strategy (TRS) seeks to generate returns in all market conditions based on the concept that various asset classes and sectors experience bull and bear markets at different times.

The strategy employs an equally weighted strategic rotation model and allocates the portfolio to the top two asset classes from a universe of six: Domestic Equities, International Equities, Bonds, Commodities, REITs & Cash.

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Categories: Tactical Investment Strategies Tags: CMG Tactical Rotation Strategy, Michael Hee, Mike Sciortino, Webinar

Considering Risk & Return in Choosing Investment Options

Posted on 07.25.14 |

Michael Hee Managing Director, Investment Research CMG

Michael Hee
Managing Director, Investment Research
CMG

In our previous posts on risk we examined the definition of risk and how to measure risk.  In this post we will examine how to measure risk and return through statistics by examining ways to compare the risk-adjusted performance of investments with differing risk and return profiles.  Incorporating these ideas will help you determine the most appropriate investment choices for your clients.

The Sharpe ratio, developed by Nobel Laureate William F. Sharpe, is a statistic which measures risk-adjusted performance.  The ratio expresses how much additional return is received from an investment portfolio for each additional unit of risk taken on.  It is calculated by subtracting the risk free rate of return, such as the 3-month T-bill rate, from the rate of return for an investment and dividing by the standard deviation of the portfolio returns.

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Categories: Portfolio Construction, Tactical Investment Strategies Tags: Michael Hee, Portfolio Construction, Sharpe Ratio, Sortino Ratio

How to Measure Risk in Investments

Posted on 05.30.14 |

Michael Hee Managing Director, Investment Research CMG

Michael Hee
Managing Director, Investment Research
CMG

In my previous post we discussed “What is Risk.”  As a follow-up, we will begin to explore how to measure risk.  When considering investment options, analyzing performance statistics without consideration of risk does not provide a view of the complete picture.

One of the most common measurements of risk is standard deviation, which statistically measures how observations are dispersed around a central tendency.  From an investment perspective, standard deviation measures how performance may be dispersed about an expected return.

For example, from January 1, 2007 through December 31, 2013, the annualized return of the S&P 500 TR Index was +6.13%.  As a comparison, the return of the Barclays Aggregate Bond TR Index (Agg Bond) was +4.91%.   However, the standard deviation of the S&P 500 Index was 16.91% compared to 3.44% for the Agg Bond.  From an average return perspective, not much difference, however the potential dispersion is significant.

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Categories: Portfolio Construction Tags: Michael Hee, Risk, Standard Deviation

Considering Risk in a Portfolio

Posted on 03.25.14 |

Capital Management Group, Inc., Mike Hee

Michael Hee
Managing Director, Investment Research
CMG

What is risk?

At its most basic level, risk can be defined as the extent to which actual investment performance may deviate from expectations.  Defining and establishing appropriate expectations is a critical aspect of a financial advisor’s business.

Prior to joining CMG Capital Management Group, while working as a consulting Actuary; I made a living by putting a price tag on risk.  Insurance companies need to be reasonably convinced that the premiums they charge their clients will be sufficient to cover future claims, administrative and operating expenses, and provide profit while constantly maintaining a competitive premium level in order to attract and retain clients.  This is a complicated endeavor which involves more than a bit of science as well as art.  Having a sound understanding of risk is critical to being able to quantify it.

Here at CMG, we often spend time discussing risk with financial advisors to help them appropriately allocate their clients’ portfolios.  Often what appears to be a well diversified portfolio from an asset allocation perspective turns out not to be well diversified from a risk perspective.

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Categories: Portfolio Construction Tags: Michael Hee, Portfolio Construction, Risk, Risk management

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IMPORTANT DISCLOSURE INFORMATION

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by CMG Capital Management Group, Inc (or any of its related entities-together "CMG") will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. References to specific securities, investment programs or funds are for illustrative purposes only and are not intended to be, and should not be interpreted as recommendations to purchase or sell such securities.
Certain portions of the content may contain a discussion of, and/or provide access to, opinions and/or recommendations of CMG (and those of other investment and non-investment professionals) as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current recommendations or opinions. Derivatives and options strategies are not suitable for every investor, may involve a high degree of risk, and may be appropriate investments only for sophisticated investors who are capable of understanding and assuming the risks involved. Moreover, you should not assume that any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice from CMG or the professional advisors of your choosing. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisors of his/her choosing. CMG is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice.
This presentation does not discuss, directly or indirectly, the amount of the profits or losses, realized or unrealized, by any CMG client from any specific funds or securities. Please note: In the event that CMG references performance results for an actual CMG portfolio, the results are reported net of advisory fees and inclusive of dividends. The performance referenced is that as determined and/or provided directly by the referenced funds and/or publishers, have not been independently verified, and do not reflect the performance of any specific CMG client. CMG clients may have experienced materially different performance based upon various factors during the corresponding time periods.
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Written Disclosure Statement. CMG is an SEC registered investment adviser principally located in King of Prussia, PA. Stephen B. Blumenthal is CMG's founder and CEO. Please note: The above views are those of CMG and its CEO, Stephen Blumenthal, and do not reflect those of any sub-advisor that CMG may engage to manage any CMG strategy. A copy of CMG's current written disclosure statement discussing advisory services and fees is available upon request or via CMG's internet web site at (http://www.cmgwealth.com/disclosures/advs).